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<SEC-DOCUMENT>0001125282-05-002333.txt : 20050505
<SEC-HEADER>0001125282-05-002333.hdr.sgml : 20050505
<ACCEPTANCE-DATETIME>20050505125544
ACCESSION NUMBER:		0001125282-05-002333
CONFORMED SUBMISSION TYPE:	424B3
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20050505
DATE AS OF CHANGE:		20050505

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DOCUMENT SECURITY SYSTEMS INC
		CENTRAL INDEX KEY:			0000771999
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373]
		IRS NUMBER:				161229730
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-116317
		FILM NUMBER:		05802409

	BUSINESS ADDRESS:	
		STREET 1:		36 WEST MAIN ST
		STREET 2:		SUITE 710
		CITY:			ROCHESTER
		STATE:			NY
		ZIP:			14614
		BUSINESS PHONE:		585 232 1500

	MAIL ADDRESS:	
		STREET 1:		36 W MAIN ST
		STREET 2:		SUITE 710
		CITY:			ROCHESTER
		STATE:			NY
		ZIP:			14614

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NEW SKY COMMUNICATIONS INC
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	THOROUGHBREDS USA INC
		DATE OF NAME CHANGE:	19861118
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>b406528_424b3.htm
<DESCRIPTION>424B3
<TEXT>
<html>
<head><title>
Prepared and filed by St Ives Burrups
</title>
</head>
<body bgcolor="#FFFFFF">
<page>
<p align="left"><font size="2" face="serif"><b>424(b)(3) Supplement</b><br>
<b>Registration No.  333-116317</b></font></p>
<p align="center"><font size="2" face="serif"><b>Supplement No.3 dated May 5, 2005</b><br>
<b>to </b><br>
<b>Prospectus Dated August 12, 2004</b><br>
<b>of</b></font><br>
<b><font face="serif" size="4">DOCUMENT SECURITY SYSTEMS, INC.</font></b></p>
<p align="left"><font size="2" face="serif"><b>SELLING SHAREHOLDERS </b></font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus supplement relates to the resale of an aggregate 3,000,000 shares of our common stock by certain of our shareholders.  The selling shareholders own 1,565,000 shares of our common stock and warrants to purchase an additional 1,435,000 shares of common stock issuable to the Selling Security Holders upon exercise of warrants.  You should read this prospectus supplement in conjunction with the prospectus dated August 12, 2004, as previously supplemented, which is to be delivered with this prospectus supplement.  This prospectus supplement is qualified by reference to the prospectus except to the extent that the information herein contained supersedes the information contained in the prospectus.
Capitalized terms used in this prospectus supplement and not otherwise defined herein have the meanings specified in the prospectus.</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Specifically, this Supplement No.2 relates to the transfer by W.A.B. Capital LLC a selling shareholder, of an aggregate of warrants to purchase 50,000 shares of Common Stock, to the individuals listed below.</font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information in the following table is presented as of April 26, 2005 and supplements the information in the table appearing under the heading &quot;Selling Security Holders&quot; beginning on page 15 of the prospectus dated August 12, 2004, including any amendments or supplements thereto, and was provided by or on behalf of the selling security holders.  The following table sets forth as to the Selling Security Holder listed below: </font></p>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following list (or footnotes) provides: </font></p>  <table width="100%" cellspacing="0" cellpadding="0" border="0">
<tr valign="top">
<td align="left" width="4%"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" width="3%"><font size="2" face="serif">&#149;</font></td>
<td align="left"><font size="2" face="serif">the names of the selling shareholders. </font></td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" width="4%"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" width="3%"><font size="2" face="serif">&#149;</font></td>
<td align="left"><font size="2" face="serif">the affiliation or material relationship we have, if any, with each selling shareholder. </font></td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" width="4%"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" width="3%"><font size="2" face="serif">&#149;</font></td>
<td align="left"><font size="2" face="serif">the amount of shares beneficially owned by each selling shareholder before this offering. </font></td>
</tr>
<tr valign="top">
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
  <td align="left">&nbsp;</td>
</tr>
<tr valign="top">
<td align="left" width="4%"><font size="2" face="serif">&nbsp;</font></td>
<td align="left" width="3%"><font size="2" face="serif">&#149;</font></td>
<td align="left"><font size="2" face="serif">the number of outstanding shares and shares underlying warrants being offered for each selling shareholder&#146;s account. </font></td>
</tr>
</table>
<p align="left"><font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beneficial ownership includes shares owned and shares that the shareholder has the right to acquire within 60 days. Except as may be notes in a footnote below, all of the shares listed as underlying</font></p>
<hr noshade align="center" width="100%" size="2">
<div style="page-break-before:always"></div>
<page>
<p align="left"><font size="2" face="serif">warrants are immediately acquirable and thus are beneficially owned by the selling shareholder holding the respective warrants. However, we have no control over when, if ever, a selling shareholder may exercise the option to exercise warrants held by such selling shareholder. </font></p>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
<tr valign="bottom">
<td align="left"><font size="1" face="serif"><b>Name of Selling Shareholder</b></font></td>
<td align="right">&nbsp;</td>
<td align="center"><font size="1" face="serif"><b>Shares<br>
  Beneficially<br>Owned<br>Before<br>Offering</b>(1)</font></td>
<td align="right">&nbsp;</td>
<td align="center"><font size="1" face="serif"><b>Shares<br>
  Currently<br>Outstanding<br>and Being<br>Registered</b></font><br><font size="1" face="serif"><b>in Offering</b></font></td>
<td align="right">&nbsp;</td>
<td align="center"><font size="1" face="serif"><b>Warrant<br>
  Shares</b></font><br><font size="1" face="serif"><b>Being<br>Registered</b></font><br><font size="1" face="serif"><b>in Offering</b></font></td>
<td align="right">&nbsp;</td>
<td align="center"><font size="1" face="serif"><b>Total</b></font><br>
  <font size="1" face="serif"><b>Shares</b></font><br><font size="1" face="serif"><b>Being</b></font><br><font size="1" face="serif"><b>Registered</b></font><br><font size="1" face="serif"><b>in Offering</b>(3)</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#ffffff">
<td align="left"><font size="2" face="serif">W.A.B. Capital LLC  (2)</font></td>
<td width="6%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">60,000</font></td>
<td width="5%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">0</font></td>
<td width="5%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">60,000</font></td>
<td width="5%" align="right">&nbsp;</td>
<td width="8%" align="right"><font size="2" face="serif">60,000</font></td>
<td width="2%" align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">William Block (2)</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">50,000</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">0</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">50,000</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">50,000</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom">
<td align="left"></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="right">&nbsp;</td>
<td align="left"><font size="2" face="serif">&nbsp;</font></td>
<td align="left">&nbsp;</td>
</tr>
<tr valign="bottom" bgcolor="#FFFFFF">
<td align="left"><font size="2" face="serif">Total</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">110,000</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">0</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">110,000</font></td>
<td align="right">&nbsp;</td>
<td align="right"><font size="2" face="serif">110,000</font></td>
<td align="left">&nbsp;</td>
</tr>
</table>
<hr noshade align="left" width="15%" size="1">
<p align="left"><font size="2" face="serif">(1) Figures include the shares of Common Stock and shares underlying warrants being registered in the registration statement of which this prospectus forms a part.</font></p>
<p align="left"><font size="2" face="serif">(2) WAB Capital served as a consultant
    to the Company and received common stock warrants and shares as compensation
    for its services. The warrants have an exercise price of $2.00 per share
    with respect to 100,000 shares and $4.40 per share with respect to 10,000
    shares. The 100,000 warrants expire on July 7, 2008 and the 10,000 warrants
    expire on January 4, 2007. WAB Capital is controlled by William Block and
    Carson Block who have the control and power to vote and/or sell the securities.
    This supplement reflects the transfer of 50,000 warrants by WAB Capital to
    William Block. WAB also retains ownership of the 10,000 warrants expiring
January 2007.</font></p>
<p align="left"><font size="2" face="serif">(3) The number of shares which may be resold by the selling shareholder assumes the sale of all shares of common stock and shares underlying warrants.  The registration statement of which this Prospectus forms a part includes additional shares pursuant to SEC Rule 416 which may be required to be issued pursuant to the anti-dilution provisions of the warrants for stock splits, stock dividends and similar corporate transaction. </font></p>
<p align="center"><font face="serif" size="2">2</font></p>
<hr noshade align="center" width="100%" size="2">
</body>
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</DOCUMENT>
</SEC-DOCUMENT>
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